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Why CLMs Fall Short on Contract Intelligence

Why CLMs Fall Short on Contract Intelligence

Shaunak Turaga

Friday April 25, 2025

Table of Contents

Most contract lifecycle management (CLM) systems are great at managing workflows: they route approvals, store templates, and track redlines. But when it comes to surfacing insights—the kind that drive strategic decisions across legal, revops, and finance—these tools fall flat.

The core issue?

CLMs were built to manage documents, not understand them.


The Visibility Gap in Traditional CLMs

While CLMs excel at process, they fail at visibility. That becomes painfully clear when teams ask questions like:

  • What’s the impact of new tariffs across our supplier contracts?

  • Where is our leverage for an upcoming renewal negotiation?

  • Which customers are still bound to outdated TOS?

More often than not, answers fall into one of three categories:

a) “We don’t know.  
b) “Let’s spin up a manual review project.  
c) “Let’s call our law firm for a discovery engagement.

This isn’t a process problem—it’s an architectural one.


Why Traditional CLMs Fall Short

Here’s a simple visualization of how most CLM architectures are set up:

              +----------------+
              |   CLM System   |
              +----------------+
                     |
        +------------+------------+
        |                         |
+----------------+      +-------------------------+
| Document Store |      | Metadata (10-20 fields) |
+----------------+      +-------------------------+
                                      
   🛑 No full-text indexing  
   🛑 No clause-level relationships  
   🛑 No search across obligations  
   🛑 No dynamic re-extraction

Most systems extract limited metadata at time of signature—and that’s it. No updates. No learning. No way to query downstream impact without digging through PDFs or launching a new review effort.


What Contract Intelligence Should Look Like

In a modern architecture, contract data is continuously indexed, enriched, and made available to any downstream system or stakeholder:

                    +------------------------+
                    |    Contract Upload     |
                    | (DocuSign, Drive, etc) |
                    +------------------------+
                                 
                    +--------------------------+
                    |   GenAI-Powered Ingest   |
                    | (OCR, Parsing, Indexing) |
                    +--------------------------+
                                 
          +----------------------+----------------------+
          |                                             |
+------------------------+      +--------------------------------+
|      Clause Graph      |      |   Structured Field Extraction  |
| (Relationships & Logic)|      | (Dates, Values, Clauses, etc)  |
+------------------------+      +--------------------------------+
          |                                             |
+----------------------------+     +------------------------------+
|   Document Relationships   |     |   Search & Q&A Interface     |
|  (Amendments, Addenda, etc)|     |   (Chat, Filters, Queries)   |
+----------------------------+     +------------------------------+
                    \                           /
                     \                         /
                      
                +----------------------------------------+
                |   External Outputs & Integrations      |
                | (CRM, Slack, Tableau, Data Warehouses)

This structure supports:

✅ Search across clauses, counterparties, and risks

✅ Flexible, user-defined data extraction

✅ Natural language querying

✅ Continuous enrichment and reprocessing

✅ True visibility across all agreements—not just one at a time


From Management to Leverage

CLMs shouldn’t just store your contracts—they should help you leverage them.

Whether you’re negotiating better terms, responding to a regulatory change, or analyzing vendor risk across thousands of agreements, your repository should serve as a system of insight, not just a system of record.

At Docsum, we’re building a post-signature contract intelligence platform that does exactly that.

  • Ingest contracts from DocuSign, Google Drive, SharePoint, Dropbox

  • Extract key fields with high precision (and customize your own)

  • Build relationships across amendments, addenda, and TOS versions

  • Query your repository with natural language

  • Push structured outputs into your CRM, data warehouse, or BI tool


You Don’t Need to Rip and Replace

Many companies hesitate to rethink their CLM strategy because of the perceived cost of change. But with an intelligence layer like Docsum, you don’t have to rip and replace your existing system.

You can augment it—with a lightweight layer that delivers value in days, not months.

If you’re looking to make your contract data truly actionable—and not just archived—reach out. We’d love to show you what’s possible.

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Get Started Today

Looking for a
contract repository?

Book a demo today to learn about how to use Docsum AI to get organized in a matter for minutes.

  • Non-Disclosure Agreements
  • Master Services Agreements
  • Data Processing Addendums
  • Statement of Work
  • Security Questionnaires
  • HIPAA Business Associate Agreements
  • Privacy Policies
  • Terms of Service
  • Non-Disclosure Agreements
  • Master Services Agreements
  • Data Processing Addendums
  • Statement of Work
  • Security Questionnaires
  • HIPAA Business Associate Agreements
  • Privacy Policies
  • Terms of Service
  • Non-Disclosure Agreements
  • Master Services Agreements
  • Data Processing Addendums
  • Statement of Work

Get Started Today

Looking for a
contract repository?

Book a demo today to learn about how to use Docsum AI to get organized in a matter for minutes.

  • Non-Disclosure Agreements
  • Master Services Agreements
  • Data Processing Addendums
  • Statement of Work
  • Security Questionnaires
  • HIPAA Business Associate Agreements
  • Privacy Policies
  • Terms of Service
  • Non-Disclosure Agreements
  • Master Services Agreements
  • Data Processing Addendums
  • Statement of Work
  • Security Questionnaires
  • HIPAA Business Associate Agreements
  • Privacy Policies
  • Terms of Service
  • Non-Disclosure Agreements
  • Master Services Agreements
  • Data Processing Addendums
  • Statement of Work

Get Started Today

Looking for a
contract repository?

Book a demo today to learn about how to use Docsum AI to get organized in a matter for minutes.

Get Started Today

Looking for a
contract repository?

Book a demo today to learn about
how to use Docsum AI to speed up
your contract workflow by 10x.

  • Non-Disclosure Agreements
  • Master Services Agreements
  • Data Processing Addendums
  • Statement of Work
  • Security Questionnaires
  • HIPAA Business Associate Agreements
  • Privacy Policies
  • Terms of Service
  • Non-Disclosure Agreements
  • Master Services Agreements
  • Data Processing Addendums
  • Statement of Work
  • Security Questionnaires
  • HIPAA Business Associate Agreements
  • Privacy Policies
  • Terms of Service
  • Non-Disclosure Agreements
  • Master Services Agreements
  • Data Processing Addendums
  • Statement of Work

AI contract repository and negotiation for legal and sales teams

© 2024 Docsum, Inc. All rights reserved.

AI contract repository and negotiation for legal and sales teams

© 2024 Docsum, Inc. All rights reserved.

AI contract repository and negotiation for legal and sales teams

© 2024 Docsum, Inc. All rights reserved.

AI contract repository and negotiation for legal and sales teams

© 2024 Docsum, Inc. All rights reserved.